NASDAQ$OFIX

Orthofix Medical Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported results for the fourth quarter and fiscal year 2020.

Orthofix reported Q4 net sales of $117.6 million, EPS of $(0.48), and adjusted EPS of $0.44. The company drove revenue close to 2019 levels while solidifying its organization amidst global elective procedure restrictions. They are shifting their transformation to execution phase, aiming for growth and high-value solutions.

  • Fourth quarter net sales of $117.6 million, within 3% of 2019 results.
  • US Spine implant sales grew 11% compared to fourth quarter 2019, driven by record M6-C artificial cervical disc performance.
  • Strong cash flow performance in the quarter, free cash flow of $17.9 million.
  • FITBONE® intramedullary lengthening and deformity system receives FDA clearance for pediatric indication.

Headline financials

Total Revenue

$118M

Previous: $121M-3.2%
EPS (adj)

$0.44

Previous: $0.51-13.7%
Gross Margin

75.3%

Previous: 78.4%-4.0%
Capital Expenditures

$3.86M

Previous: $5.26M-26.6%
Free Cash Flow

$57.2M

Previous: $6.68M+755.6%
Net Income

-$9.38M

Previous: $11.7M-180.2%
Operating Income

$3.71M

Previous: $4.1M-9.5%
Gross Profit

$88.5M

Previous: $95.3M-7.1%
Cash & Equivalents

$96.3M

Previous: $69.7M+38.1%
Total Assets

$526M

Previous: $496M+6.1%
Stock-Based Comp

$3.81M

Previous: $4.16M-8.5%

Revenue & EPS history

Orthofix · Revenue · Quarterly

$118M

Q4 2020-3.2%vs Q4 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Orthofix · $78.3M total across 2 segments · Q4 2020

  • Bone Growth Therapies
    $50.5M-0.9%
  • Spinal Implants & Biologics
    $27.8M+9.3%

Forward guidance

Orthofix expects net sales between $445.0 and $460.0 million for the full year 2021. For Q1 2021, they anticipate net sales between $95.0 and $96.0 million, adjusted EBITDA between $50.0 and $54.0 million, and adjusted EPS between $0.45 and $0.55.

Tailwinds

  • Year-over-year increase of 9.5% to 13.1% on a reported basis for full year net sales.
  • Expected rebounds in procedural volumes and case complexity in the third and fourth quarters.
  • Q1 2021 adjusted EBITDA represents a year-over-year increase of 5.0% to 13.4%.
  • Q1 2021 adjusted EPS represents a year-over-year increase of 73.1% to 111.5%.
  • Expect improvements in March in procedural volume declines.

Headwinds

  • COVID-19 restrictions have increased over December 2020 measures.
  • Procedural volume declines of approximately 15% from January through early February.
  • Weather emergency experienced last week will likely have an additional negative impact on our business for the first quarter.
  • Anticipate a modest impact from COVID-19 related restrictions into the second quarter.
  • Q1 2021 net sales represents a year-over-year decrease of 9.4% to 8.4% on a reported basis

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-0.9%

Avg return

Earnings day

-2.6%

Avg return

5 days after

-3.4%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+20.3%

Q2 2014

Best reaction

-18.5%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.8%-2.8%-13.8%
Q4 2025-7.0%-0.4%-13.2%
Q3 2025-7.4%-6.8%-1.0%
Q1 2025-10.8%-10.6%-20.9%
Q4 2024-3.5%-4.2%-11.0%
Q3 2024+5.5%+4.6%+1.2%
Q2 2024+13.8%+10.8%+16.7%
Q1 2024+10.7%+8.8%+0.6%
Q4 2023+8.1%+7.1%+8.6%
Q3 2023-12.5%-20.2%-3.2%
Q2 2023+9.9%+7.6%+1.3%
Q1 2023+1.0%-2.3%+6.7%
Q4 2022-7.7%-13.2%-15.5%
Q3 2022-2.2%+4.1%+30.5%
Q2 2022-6.6%-8.8%-20.9%
Q1 2022-10.5%-14.3%-11.6%
Q4 2021+4.0%+3.5%+0.4%
Q3 2021-5.9%-10.9%-18.6%
Q2 2021+8.9%+4.1%+12.4%
Q1 2021+0.5%-2.0%-8.7%
Q4 2020+0.6%-0.5%-7.3%
Q3 2020+5.2%+13.6%+10.8%
Q2 2020+4.5%+4.6%-13.4%
Q1 2020-1.9%-6.9%+3.9%
Q4 2019-18.5%-21.5%-40.9%
Q3 2019-16.8%-17.0%-9.6%
Q2 2019+0.1%+2.6%-5.5%
Q1 2019-2.6%-0.3%-10.9%
Q4 2018-8.5%-10.0%-14.8%
Q3 2018+7.4%+8.8%+4.1%
Q2 2018-15.1%-11.9%-12.1%
Q1 2018-13.4%-14.6%-10.5%
Q4 2017+6.4%+4.6%+8.4%
Q3 2017+8.8%+5.1%+9.6%
Q2 2017+9.9%+6.8%+12.3%
Q1 2017+1.4%+3.8%+8.2%
Q4 2016-6.1%-4.8%+2.6%
Q3 2016-3.8%-6.8%-1.5%
Q2 2016-10.4%-10.5%-4.8%
Q1 2016+0.4%
Q4 2015+2.8%
Q3 2015+14.4%
Q2 2015+13.8%
Q1 2015+0.4%
Q4 2014-10.8%
Q3 2014+20.3%
Q2 2014+20.3%
Q1 2014+4.2%
Q4 2013+14.1%
Q3 2013+1.1%
Q2 2013-0.8%
Q1 2013-16.4%
Q4 2012-4.9%
Q3 2012-2.8%
Q2 2012+4.5%
Q1 2011-0.7%
Q1 2012+1.0%
Q1 2010-4.8%
Q4 2011-4.8%
Q4 2009-4.8%
Q3 2010-7.4%
Q3 2011-7.4%
Q4 2010-9.5%
Q2 2010-9.5%
Q2 2011-9.5%

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